Tuesday, 8 October 2019
Financial Resolution No. 8: Income Tax and Corporation Tax - REITs
(1) THAT Part 25A of the Taxes Consolidation Act 1997 (No. 39 of 1997) be amended—(a) by inserting the following section after section 705I—
“Disposals and reinvestments
705IA. (1) This section applies where a REIT or group REIT disposes of a property of its property rental business.
(2) Where the full proceeds from the disposal of the property are not—
(a) reinvested in the acquisition of a new property for use in the REIT’s or group REIT’s property rental business,
(b) reinvested in the development or enhancement of a property held for use in the REIT’s or group REIT’s property rental business, or
(c) distributed to the shareholders of the REIT or the shareholders of the principal company of the group REIT, as the case may be,
before the expiry of the period referred to in section 705I(2) (in this subsection referred to as the ‘first mentioned period’) or, if earlier than that expiry, the date specified in a notice given under subsection (1) or
(4) of section 705O (in this subsection referred to as the ‘specified date’) then any amount not so reinvested or distributed shall, for the purposes of applying the condition specified in section 705B(1)(b)(vi) and for the purposes of section 705N(a), be treated as property income of the REIT or group REIT arising in the accounting period in which the first mentioned period expires or the specified date falls.
(3) Subsections (2) and (3) of section 172D, and subsection (4) of section 153, shall not apply to any distribution of the proceeds of a disposal referred to in subsection (1).”,
(b) in section 705P(2) by substituting for “Where a notice is given under subsection (1) or (4) of section 705O, the assets of the REIT or group REIT” the following:
(a) a notice is given under subsection (1) or (4) of section 705O, and
(b) at the time of the giving of that notice, not less than fifteen years have elapsed from the date the REIT or group REIT became such under section 705E(4),
the assets of the REIT or group REIT”.(2) THAT paragraph (1) of this Resolution shall apply to disposals made after 8 October 2019.
(3) IT is hereby declared that it is expedient in the public interest that this Resolution shall have statutory effect under the provisions of the Provisional Collection of Taxes Act 1927 (No. 7 of 1927).